*

Walmart ( WMT ) asked Chinese suppliers to cut prices amid U.S.

tariffs,

reports say

*

Chinese officials warn Walmart ( WMT ) about potential legal

issues over

price cuts

*

Walmart ( WMT ) diversifies supply chain but remains reliant on

Chinese

imports

(Adds Chinese commerce ministry response in paragraph 3-4)

SHANGHAI/NEW YORK, March 12 (Reuters) - Beijing

officials met with Walmart ( WMT ) this week to discuss media

reports that the U.S. retailer has asked Chinese suppliers to

slash prices on their goods to offset the impact of the Trump

administration's tariffs, according to social media posts

affiliated with state-run broadcaster CCTV.

The posts, published on Wednesday on the Yuyuantantian

Weibo account, said the meeting between China's commerce

ministry and Walmart ( WMT ) representatives was held on March 11. The

posts cited sources familiar with the meeting.

A spokesperson from China's commerce ministry said on

Thursday that ministry authorities have reached out to Walmart ( WMT )

for further information after noticing media reports and

receiving feedback from some enterprises.

The ministry did not elaborate on its communication with

the company.

A Walmart ( WMT ) spokesperson confirmed the meeting took place but

offered no further details.

"We will continue to work closely with them (suppliers) to

find the best way forward during these uncertain times. We have

a strong business in China and are proud of our associates

around the world who are delivering for customers and members,"

Walmart ( WMT ) said in an emailed statement.

The meeting was prompted by reports that Walmart ( WMT ) had

requested some Chinese suppliers to cut their prices by as much

as 10% per round of tariffs, essentially shifting the full cost

of U.S. tariffs onto these suppliers.

Chinese officials told Walmart ( WMT ) that asking suppliers to

lower prices might violate contracts and disrupt market order,

and referred to potential legal consequences, the Wall Street

Journal reported.

Walmart ( WMT ) has been working to mitigate the impact of tariffs

since U.S. President Donald Trump's first term by diversifying

its supply chain and reducing its reliance on China.

However, China remains a significant source for Walmart's ( WMT )

discretionary merchandise, such as clothing, electronics, and

toys. A substantial portion of these imports, including items

like Reebok shoes, Mattel toys, Onn TVs, t-shirts, belts, shoes,

and appliances, still come from China, according to recent bill

of lading data seen by Reuters.

Walmart ( WMT ) also operates its warehouse club chain, Sam's Club,

in China, where its popularity with younger customers has made

it the market leader.

Last month, Walmart CFO John David Rainey described the

tariff situation as unpredictable but manageable for the

company.

"That (tariffs) is unpredictable at this point. We feel like

we can navigate that very well, but that's something that's

uncertain out there," he said.

Rainey also expressed concern about the potential impact

on American consumers' wallets, particularly if the United

States enters a re-inflationary environment with rising interest

rates.

Despite these challenges, analysts believe Walmart ( WMT ) is

well-positioned to handle the economic environment. The

company's scale allows it to maintain low prices, particularly

in the grocery sector, where it accounts for one in every four

dollars spent in the U.S.

Earlier in March, U.S. Treasury Secretary Scott Bessent

expressed confidence that Chinese manufacturers would absorb

U.S. tariffs that went into effect last week.

"I am highly confident that the Chinese manufacturers will

eat the tariffs, (and) prices won't go up," Bessent told Fox

News in an interview.